$8 Million Released to Settle Ghana Airways Creditors

The Acting Registrar-General, Mr. Joseph K. Harlley, has warned the 28 former Chief Executive Officers of the defunct Ghana Airways, that whoever is found culpable of causing a huge debt to the company, would be charged for causing financial loss to the State.

He observed that in the 40 years existence of the operations of the airline, there had been some debts, which could not be supported.

Speaking at the official liquidation (OL) at the Registrar General's Department yesterday, he said that instead of about $11 million debt to be paid to Ghana Airways, they could only claim $2 million, due to improper documentations, and the fixing of ghost names.

Mr. Felix Addo, a partner of the advisory services of PriceWaterhouseCoopers Ghana, has announced that the Government of Ghana (GoG) had given a grant of $8 million to aid in the settlement of creditors of the Ghana Airways Limited.

Mr. Addo stated that Ghana Airways, now Ghana International Airlines (GIA), was an independent body, which worked on its own, adding that the GoG was extending help, by subsidizing the amount the company owed creditors, in and outside the country.

Mr. Addo said that out of the 95% payments made to creditors by the company, 5% was given by the GoG, out of the total dividend of 14%, received by creditors of the defunct airline to date.

He was of the belief that this was done by the GoG, to avoid a rise in the rate of unemployment, and to protect the image of the country.

He further said that out of the recorded 238 claims, amounting to about GH¢175 million to the Airline, GH¢25 million had been rejected, due to the absence of unsubstantiated documents produced by the creditors.

He also said that an amount of US$4.8 million arrears of the company to the Internal Revenue Service (IRS) had been taken care of by the GoG, to help in funding liquidation activities, stressing that the GoG also made a provision of US$1.3 million, for the settlement of severance awards to former Ghana Airways pilots, and flight engineers.

The GoG, in helping curb the rate of unemployment in the country, also gave an amount of US$ 4.8 million, to specific creditors, out of the portions of claims.

Mr. Addo told The Chronicle, in an interview, that the amount was to help the claimants divert their attention, and resources to other sectors in the country, to avoid an economic crisis, maintaining that the GoG had promised an amount of US$2.5 million, to provide funding for former employees within the 2008 budget cycle.

Claims not settled by the official liquidators include that of the Ghana Ports and Harbours Authority (GPHA), which has been classified under unsecured, due to their failure to prove the charge over GH's DC9 aircraft (9GADU), in respect of their US$11 million lending to Ghana Airways.

He also said that all preferential claims submitted by the Social Security and the National Insurance Trust (SSNIT), and the IRS have been negotiated and duly settled.